As the Star Entertainment group struggles financially, the New South Wales government in Australia has extended a small lifeline. Rather than introduce its $1000 AUD ($650.49) gaming limit on August 19, it will instead postpone it until August 19, 2027. This will maintain the $5000 limit currently in place and act as some relief for the floundering casino.
It came together after Star and Crown Sydney wrote to officials requesting the delay. According to reports, Star needed the delay to refit its machines to match the incoming limitation. With two years on the clock, it can now tend to its 1,500 machines.
At the moment, Star is currently on yet another lifeline. American casino company Bally’s has issued a AUD 300 million ($195,192,000) lifeboat to the Australian operator, in a bid to keep its doors open. This is after an AUD 940 million ($611 million) fell through. In recent weeks, staff have begun to strike as their union pushes for a 6% pay rise.
The Sydney-based casino resort posted a loss of AUD 27 million ($17,567,819.92) and saw a 22% year-on-year decline in overall business.
However, it’s not entirely secure. The current ruling can be revoked whenever the New South Wales government likes it, essentially. If things pick up (or get worse) for The Star, it could find that the delay reduction could be snapped away.
NSW government extends small lifeline to Star
As reported by Inside Asian Gaming, and originally in the Australian Financial Review, a spokesperson said:
“The government has now determined to continue this transitional arrangement … for another two years. The continuation of this arrangement was approved in recognition of several factors, including the effectiveness of other financial crime measures … along with concerns by casino operators about potential employment impacts.”
While the $5000 limit will surely help, The Star’s various business failings might mean it’s not enough to fend off the financial woes looming over the company.
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